The government has published its response to the consultation on insolvency and corporate governance. The document sets out its proposed next steps; in some areas the government will legislate but in other areas further consultation will be needed.

The proposed insolvency reforms include

• the introduction of a new moratorium to give ultimately viable financially distressed companies a period of time when creditors (including secured creditors) cannot take action against the company, allowing it to make preparations to restructure or seek new investment;

• prohibition of enforcement by a supplier of termination clauses in contracts for supply of goods and services, on the grounds that a party has entered a formal insolvency procedure, the new moratorium or the new restructuring plan; and

• creation of a new restructuring vehicle that would include the ability to bind dissenting classes of creditors who vote against it.

See: and uploads/system/uploads/attachment_data/file/736163/ ICG_-Government_response_doc_-24_Aug_clean_ version__with_Minister_s_photo_and_signature__ AC.pdf